The smart manufacturing systems (SMS) offer several advantages compared to the traditional manufacturing systems and are increasingly being adopted by manufacturing organizations as a strategy to improve their performance. Developing an SMS is expensive and complicated, integrating together various technologies such as automation, data exchanges, cyber-physical systems (CPS), artificial intelligence, internet of things (IoT), and semi-autonomous industrial systems. The Small, Medium and Micro Enterprises (SMMEs) have limited resources and therefore, would like to see the benefits from investments before allowing adopting SMS. This study uses a combination of exploratory and empirical research design to identify and validate the performance measures relevant to the evaluation of SMS investments in auto-component manufacturing SMMEs based in India. The study found that an Industry 4.0 enabled SMS offer more competitive benefits compared to a traditional manufacturing system. The planned investments in SMS can be evaluated on ten performance dimensions namely, cost, quality, flexibility, time, integration, optimized productivity, real-time diagnosis & prognosis, computing, social and ecological sustainability. Proposed novel Smart Manufacturing Performance Measurement System (SMPMS) framework is expected to guide the practitioners in SMMEs to evaluate their SMS investments.
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
- Economics and Econometrics
- Management Science and Operations Research
- Industrial and Manufacturing Engineering